Plain language law

New Zealand law explained for everyone

Accident Compensation Act 2001

Management of the Scheme - Work Account

174: Employer to notify increase or decrease of relevant employee earnings

You could also call this:

"Tell ACC if your employees' earnings change a lot"

If you're an employer, you need to know about changes in your employees' earnings during a tax year. Here's what you should do:

You should compare the earnings for the current tax year with the earnings from the last tax year. If you think there will be a big change, either more or less, you might need to tell the Accident Compensation Corporation (ACC).

If you believe the change in earnings will be 20% or more, you must tell ACC. You need to give them your best guess of what the total earnings will be for the tax year.

For smaller changes, less than 20%, you can choose to tell ACC if you want to, but you don't have to.

ACC might ask you for more information about your guess. If they do, you need to give it to them.

After ACC gets the new earnings information, they will work out a new levy (which is like a fee you pay). They will then let you know what the new levy is as soon as they can.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM102414.

Topics:
Work and jobs > Workplace safetyHealth and wellbeing > Healthcare services
Previous

173: Estimation of levy, or

"The government guesses how much you might owe for workplace accidents"

Next

174A: Corporation may develop and establish workplace incentive programmes, or

"ACC can make programs to help workplaces be safer"

Part 6Management of the Scheme
Work Account

174Employer to notify increase or decrease of relevant employee earnings

  1. Subsection (2) applies if an employer, during a tax year, reasonably believes that there will be an increase or decrease in the relevant employee earnings for that tax year from the relevant employee earnings for the immediately preceding tax year.

  2. When this subsection applies,—

  3. if the increase or decrease is 20% or more, the employer must notify the Corporation of the employer's estimate of the relevant employee earnings for that tax year; and
    1. in any other case, the employer may notify the Corporation of that estimate.

      1. The Corporation may require an employer to provide further information to support the employer's estimate.

      2. As soon as practicable after receiving the earnings figures necessary for the Corporation to recalculate the levy, the Corporation must recalculate the levy and notify the employer of the recalculated levy.

      Notes
      • Section 174(1): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
      • Section 174(2)(a): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).